The third quarter report is the latest to show the banking industry continues to gradually recover from the financial crisis. (Read More: Inside America's Economic Crisis)
In the third quarter loan growth improved for the fifth time in the last six quarters, though the increase of $65 billion was below the second quarter's increase of $102 billion. The FDIC also said a majority of banks reported an improvement in earnings from last year's third quarter, while those reporting negative net income fell to the lowest level since the second quarter of 2007.
Underscoring the industry's improved health, only twelve insured banks failed in the third quarter, the smallest quarterly number since the fourth quarter of 2007. The FDIC said asset quality also continued to improve among the nation's banks.
The FDIC points out there are still some big risks facing the banking industry, most notably the U.S fiscal problems and economic woes overseas. (Read More: Fiscal Cliff, Complete Coverage)